Electric V ehicle Convenings - MIEIBC · Electric Vehicle Convenings: Report and Next Steps 4 In October 2017, the MPSC opened a docket to seek comments on whether Michigan’s utilities

Electric Vehicle Convenings Report and Next Steps

September, 2018

Electric Vehicle Convenings: Report and Next Steps

Contents

Executive Summary ................................................................................................................................................ 1

Organizations .................................................................................................................................................... 2

Sponsors ........................................................................................................................................................... 2

Introduction ....................................................................................................................................................... 3

Electric Vehicle Convenings .............................................................................................................................. 5

Convening 1: Utility Pilot Programs and the Volkswagen Settlement ............................................................... 6

Convening 2: Customer Education and Awareness .......................................................................................... 7

Convening 3: Long-dwell and DC Fast Charging .............................................................................................. 9

Convening 4: Fleet Electrification .................................................................................................................... 10

Convening 5: Rate Design ............................................................................................................................... 12

Recommendations for Future Actions ............................................................................................................. 13

Electric Vehicle Convenings: Report and Next Steps 1

Executive Summary

The convergence of the energy and mobility sectors represents a disruptive inflection point for transportation

and electricity that – if harnessed – can give the state of Michigan an advantage by utilizing the state’s unique

strength in the battery industry, electrified power train engineering, advanced energy industry, and - not least

– automotive industry.

The transportation industry is changing rapidly. As mobility as a service, shared rides, and automated and

connected transportation grow, the electrified powertrain is the platform for the transportation future. Buttressed

by changes in the electricity sector including limited increases in load, time of use pricing structures, and reliability

concerns, vehicle electrification is an emerging grid solution that can provide both increased electricity demand

when there is excess capacity on the grid and, in the future, broad storage capacity. Data use, integration,

compilation, and access form the union point between the increasingly interconnected and interdependent

advanced energy industry and mobility sector. Data is crucial in the ongoing integration of advanced energy into

the electric grid and will be just as important in developing an intelligent, nimble electricity system. This data

integration is necessary to enable electric, autonomous, and connected vehicles and the resulting dynamic and

beneficial load that they represent.

Recognizing the economic opportunity for Michigan as a leader in the burgeoning advanced mobility sector

and understanding that automated, connected, and shared vehicles will not hit Michigan roads without wide-

scale vehicle electrification, the Michigan Energy Innovation Business Council (Michigan EIBC) convened

a series of meetings focused on electric vehicles (EVs) for stakeholders across the advanced mobility space.

These convenings included stakeholders from industry, government, nonprofits, and a variety of other actors.

The convenings addressed 1) utility pilot programs and the Volkswagen settlement; 2) customer education and

awareness; 3) long-dwell and DC fast charging infrastructure; 4) fleet electrification; and 5) rate design.

Undertaken within Michigan’s broader context, the convenings were intended to complement and support a

comprehensive effort to advance EV adoption in Michigan. Through this initiative, Michigan EIBC sought to bring

together multi-disciplinary stakeholders to explore a future that is well-rooted and guided by Michigan’s past. The

result is the tools to design a system that will sustain not just for a program, but for a new generation of mobility.

Given significant stakeholder interest and in-depth discussions at the meetings, Michigan EIBC has identified

recommended next steps. These include a gaps assessment of current key EV initiatives, a set of stakeholder

discussions focused on key topics including coordination with auto dealers and site hosts, and the creation of a

roadmap for the next state administration.


Organizations

The Michigan Energy Innovation Business Council (Michigan EIBC) is a business trade association representing

advanced energy companies doing business in Michigan. Michigan EIBC’s mission is to grow Michigan’s

advanced energy economy by fostering opportunities for innovation and business growth and offering a unified

voice in creating a business-friendly environment for the advanced energy industry in Michigan.

Sponsors

Michigan EIBC’s EV convenings were sponsored by Advanced Energy Economy, DTE Energy, Consumers Energy,

the Michigan Agency for Energy, CLEAResult, the Ecology Center, and Lyft. Michigan EIBC greatly appreciates

the support of each of these organizations.


As the advanced mobility state, the answer to “what’s going on in Michigan?” needs to be that “we’re creating the premiere EV program in the nation.”

Introduction

Michigan is well positioned to play a leading role in the deployment of electric vehicles (EVs) and EV infrastructure.

Not only is the state the center of the U.S. automotive industry and a hub for energy storage research and

manufacturing, but Michigan is also the advanced mobility leader. Recent initiatives like the American Center for

Mobility and Planet M, which support the mobility industry through collaboration, research, and marketing, are

being coupled with the state’s inherent research and development assets and engineering expertise to meet the

mobility needs of the 21st century. Michigan is also home to a robust and growing advanced energy industry,

which complements and is integrated with advanced mobility.

The automated, connected, shared future for mobility – in Michigan and across the globe – will be built on an

electrified platform. This creates an immense market opportunity for Michigan’s economy and for the state to

be a dominant player in the development and deployment of EVs and in turn, in the automated, connected, and

shared future of mobility. Beyond this market opportunity, greater EV use is predicted to save billions of dollars in

reduced electricity bills, vehicle operating costs, and costs associated with greenhouse gas emissions.1 However,

the realization of these benefits depends upon actions by multiple stakeholders, including utilities, regulators,

automakers, nonprofits, and the advocacy community, to improve customer awareness, deploy charging

infrastructure, develop supportive policies, and enact effective rate structures. Only by building the necessary

foundational EV infrastructure can Michigan become a leader globally, while also creating economic benefits for

in-state residents and companies.

Just as advanced mobility gains increased traction, the intersection of mobility and vehicle electrification is

becoming an increasingly important topic of conversation and work in Michigan. A variety of recent efforts

demonstrate Michigan’s continued leadership in this space and helped inform Michigan Energy Innovation

Business Council’s (Michigan EIBC) EV convenings. In 2010, the Michigan Public Service Commission (MPSC),

under the leadership of Chairman Isiogu, initiated the Plug-In Electric Vehicle Preparedness Task Force. Although

the Task Force successfully generated significant stakeholder input and built the foundation for needed EV-

enabling policies, the broader automobile market shifted not long after and attention turned back to more

traditional gasoline-powered vehicles.

More recently, discussion of EV infrastructure in Michigan

was brought to the forefront by a 2016 Consumers Energy

rate case (U-17990). Although the utility ultimately decided

not to move forward with the EV program proposed in that

case, it became clear to Consumers Energy and other

parties across the industry that additional discussion and

stakeholder engagement was critical to the success of EV

awareness and deployment in Michigan. In August 2017,

the MPSC held a technical conference on Alternative Fuel Vehicles. Experts from the investor-owned utilities,

auto industry, charging equipment suppliers, environmental advocates, transportation planners, and vendors

came together to discuss the state of EV technology and infrastructure, opportunities and barriers, and the role

of regulators and stakeholder groups in advancing EVs in Michigan. This conference helped set the agenda for

increased efforts on EVs.

1 M.J. Bradley & Associates. 2017. “Electric Vehicle Cost-Benefit Analysis: Plug-In Electric Vehicle Cost-Benefit Analysis: Michigan.” https://www.mjbradley.com/content/mjba-analyzes-state-wide-costs-and-benefits-plug-vehicles-michigan.


In October 2017, the MPSC opened a docket to seek comments on whether Michigan’s utilities should initiate

a series of targeted pilot programs to explore, understand, and address issues related to the deployment of

EV infrastructure. Michigan EIBC coordinated joint comments from 19 parties,2 which supported the initiation

of utility-led pilot programs for EV infrastructure deployment. The joint comments outlined three agreed upon

principles supporting the case for EV pilot programs:

1) Transportation electrification is in the public interest;

2) Transportation electrification in Michigan is lagging and barriers need to be addressed; and

3) Electric companies are uniquely suited to help.

Beyond simply making the case for utility-initiated pilot programs, the joint commenters identified four potential

near-term actions and areas of focus for such pilot programs:

1) Economic Rationale for Transportation Electrification and Electric Companies’ Role;

2) Smart Charging and Rate Design;

3) Customer Awareness and Education;

4) PEV Infrastructure Deployment.

Recognizing the growing opportunity for Michigan’s leadership in vehicle electrification and advanced mobility,

Michigan EIBC initiated a series of five stakeholder convenings to build upon the MPSC’s commitment to

encouraging utility EV pilot programs as well as clear stakeholder interest in supporting EV deployment. The

convenings, which took place throughout 2018, were designed to support and inform utility pilot programs,

facilitate stakeholder collaboration and education, and determine future steps to foster supportive policy outcomes

and increase EV deployment in Michigan. Conducting this

engagement effort under the Michigan EIBC umbrella

enabled the inclusion of and support from a wide

spectrum of stakeholders including utilities, regulators,

state government officials, automobile manufacturers,

advanced energy companies, environmental advocates,

public transit authorities, municipalities, and others.

As described in detail below, each of the five convenings focused on a specific sector of EV deployment including:

1) utility pilot programs and the Volkswagen settlement; 2) customer education and awareness; 3) long-dwell and

DC fast charging infrastructure; 4) fleet electrification; and 5) rate design. Each meeting included presentations

from in-state and out-of-state experts and in-depth discussion among participants, which enabled a greater

understanding of the challenges, opportunities, potential solutions, and areas for future focus.

2 The joint commenters were ACTIA, Advanced Energy Economy, The Alliance for Transportation Electrification, Clean Fuels Michigan, Consumers Energy Company, DTE Electric Company, The Ecology Center, Edison Electric Institute, Ford Motor Company, General Motors, Greenlots, Michigan Electric and Gas Association, Michigan Energy Innovation Business Council, Michigan Environmental Council, Michigan League of Conservation Voters, Natural Resources Defense Council, Phoenix Contact, Siemens, and Sierra Club.

The future of mobility is for vehicles to be automated, connected, electrified, and shared.


Electric Vehicle Convenings

Approximately 140 stakeholders participated in the five EV convenings. As detailed in the below table, these

stakeholders represented 74 organizations from a wide variety of sectors. Given the array of topics, some

stakeholders attended multiple convenings or all convenings, while others participated on only one topic. The

meetings were sponsored by Advanced Energy Economy, DTE Energy, Consumers Energy, the Michigan Agency

for Energy, CLEAResult, the Ecology Center, and Lyft.

Participating Organization

ABC Student Transportation ITC Holdings Corp.

Advanced Energy Economy LithSafe

Advantron Technologies, Inc. MICHauto

Atlas Policy Consulting Michigan Agency for Energy

Bedrock Detroit (Bedrock Management Services LLC) Michigan Association for Pupil Transportation

CALSTART Michigan Association of School Boards

CAR Michigan Climate Action Network

ChargePoint Michigan Conservative Energy Forum

City of Ann Arbor Michigan Department of Environmental Quality

City of Grand Rapids Michigan Department of Transportation

Clean Fuels Michigan Michigan Economic Development Corporation

CLEAResult Michigan Energy Innovation Business Council

ClipperCreek, Inc. Michigan Environmental Council

Consumers Energy Michigan League of Conservation Voters

Corrigan Oil Co Michigan Municipal League

Dewitt Public Schools Michigan State University

DTE Energy Michigan Public Service Commission

eCAMION Natural Resources Defense Council

Eco-Green-Energy, LLC Oxford Community Schools

Ecology Center Peracchio & Company, LLC

EEI Phil Jones Consulting

Electrify America Phoenix Contact E-Mobility

Enervee Plug In America

Environmental Law & Policy Center Plug Smart

EVGo PlugInConnect

EVolution Electric Vehicle Systems Powerlink Systems

5 Lakes Energy Reach Strategies

Ford Motor Company Rhombus Energy

General Motors Siemens Energy

Greenlots Sierra Club

Gretchen Whitmer for Governor Southwest Detroit Environmental Vision

Great Lakes Energy Spartan Renewable Energy

Great Lakes Renewable Energy Association State of Michigan, Energy Office

Hino Motors Toyota

Homeworks Tri-County Tri-County Regional Planning Commission

Indiana Michigan Power (AEP) Varnum LLP

Institute for Energy Innovation Zeeland Public Schools


Convening 1: Utility Pilot Programs and the Volkswagen Settlement

January 16, 2018

Topics Covered

The first EV convening focused on EV pilot programs under development by DTE Energy and Consumers Energy

as well as the funding provided to Michigan under the Volkswagen settlement.

Summary

The first convening was attended by automakers, utilities, government agencies including the MPSC and Michigan

Agency for Energy, Michigan EIBC member companies including Advanced Energy Economy, ChargePoint,

CLEAResult, and 5 Lakes Energy, public schools and school transportation agencies, and other interested parties.

The meeting focused on the EV pilot programs that Michigan’s utilities were in the process of developing. Camilo

Serna of DTE Energy and Mike Delaney of Consumers Energy discussed the utilities’ respective approaches to

EV deployment. Serna explained that DTE Energy sees utilities’ role in EV deployment as four-pronged: educating

customers, designing rates, managing charging, and investing in and supporting charging infrastructure. As such,

DTE Energy is prioritizing make-ready Level 2 and DC fast charging (DCFC) infrastructure, in which ownership is

split between the utility and the site host; a residential approach to rates (including time-of-use and flat rates); and

education, including an updated website, mailings, and education for potential site hosts.

Delaney explained that Consumers Energy is trying to pursue “smaller bets” given the uncertainty about the future

deployment of EVs. Consumer Energy’s goals are to improve the customer experience, define the role of a regulated

utility regarding PEV infrastructure, realize grid benefits while mitigating risks, and plan for future changes. Delaney

emphasized home charging equipment installation, increasing customer awareness, and smart charging technology

as focus areas for the utility. He also prioritized exploring rate options for DCFC, public charging, and workplace/

multi-unit dwelling charging.

After these discussions, Robert Jackson of the Michigan Energy Office (MEO) and Debbie Swartz of the Michigan

Department for Environmental Quality discussed the importance of effectively utilizing Volkswagen Settlement

funds to replace older diesel vehicles and deploy EV infrastructure. To determine where EV charging stations

should be located, MEO commissioned a study by Michigan State University. Jackson emphasized the need for

Michigan to balance investment in EV charging infrastructure with neighbors in Ontario.

Participants in EV convening Al Freeman, Executive Advisor, Michigan Public Service Commission

Robert Jackson, Director, Michigan Energy Office


Key Takeaways

• Stakeholders brought up a number of suggestions for the utilities including:

– Consider working with public schools to educate students (and thus parents) on EVs, potentially using

science classes, tech classes, or electric bus fleets as jumping-off points;

– Consider working with municipalities’ and commercial businesses’ fleets and ride-share fleets to create

opportunities for education;

– Share best practices with other utilities. Serna noted that the Edison Electric Institute’s “passport” program

allows utilities to share information and data around this issue, and that DTE also shares information with

the Department of Energy, automakers, and oil companies;

– Consider electric school buses as part of the utilities’ plans.

• The discussion at this convening also made it clear that enhanced coordination between the utilities and the

MEO is necessary to ensure that efforts to fund charging infrastructure are effective and put to the best use.

Convening 2: Customer Education and Awareness

March 22, 2018

Topics Covered

The second EV convening centered around customer awareness and education. The goal for the meeting was to

understand the venues where customers get their information about EVs, what gaps exist in their knowledge, and

how those gaps could be addressed.

Summary

Michigan EIBC hosted its second EV Convening at the Michigan Saves office in Lansing, Michigan. The meeting

began with a panel discussion of automakers’ perspectives on consumer and dealer education with Britta Gross,

Director of Advanced Vehicle Commercialization Policy at General Motors, and Lisa Teed, U.S. Marketing Strategy

Manager with Ford Motor Company.

Gross said that despite significant growth, EVs are still

primarily being driven by “early adopters” – people

who are excited to try new technologies. The next step

is to get general consumers interested in EVs. General

Motors is focused on dealer education, providing online

information, story-telling as a key for advertising, and

large-scale public awareness campaigns.

Teed discussed Ford’s perspective and customer education model, emphasizing that automakers and other

interested parties should to take current deployment into account when predicting future demand. Ford has

found that customers want options in EVs, including longer ranges per charge, and a variety of car sizes and

body styles. Teed emphasized that consumer education needs to focus on why there is a push for electrification

and what EVs can offer them.

The second panel was a conversation on customer psychology and behavioral economics, in which Dr. Brandy

Brown, a Senior Evaluation Consultant at CLEAResult, and Dr. Anne Niederberger, Vice President of Marketing and

Development at Enervee, provided a third-party perspective on the importance of consumer education by utilities.

“ This is a very unique opportunity to engage and co-create with others in the industry. I’ve learned so much from participating.” — EV convening participant


Brown discussed CLEAResult’s work with utilities and their customers on EVs. Brown explained that CLEAResult’s

approach is to make EVs desirable and to meet the customer where they are, rather than expecting customers to

seek out information. It is especially important to close information gaps by providing customers with accurate and

helpful information, and to advise them during the product evaluation period.

Enervee is a data and behavioral science company that works to make it simple and compelling for people to buy

clean and efficient energy products, including EVs. An Enervee survey found that most customers want clean vehicles

and low fuel costs, but they don’t realize that an EV would give them those results. As Niederberger explained, we

need to make people realize that an EV can be the car that has the features they desire. Niederberger described a

website Enervee built that provides customers with information on different vehicles and allows them to compare

their non-EV “dream car” to the closest EV match so they can see the benefits of buying an EV.

Key Takeaways

After the panel presentations, small groups discussed the best tactics to improve customer awareness. Each group

came up with several ideas and then all participants voted for the best ideas:

• Build a “community” of businesses, NGOs, and government organizations to support the idea that Michigan,

as the automobile capitol of the world, is leading the mobility revolution with EVs. This could be done using

storytelling and learnings from the Pure Michigan campaign. (18 votes)

• Conduct more ride and drive events that include demonstration charging infrastructure so that customers are not

only able to experience the cars, they are also able to experience charging. (10 votes)

• Create better incentives for dealers to become EV certified and sell more EVs. (8 votes)

• Leverage Michigan’s auto journalists, especially at upcoming events, to provide greater coverage of the EV

industry. (8 votes)

• Seed youth with excitement about EV technology by leveraging social media and employment opportunities. (6 votes)

• Develop a contest for college students to create videos and social media to drive excitement around EVs. (5 votes)

• Create a state educational website focused on EVs. (1 vote)

• Improve the visibility of EVs, especially in the mindset of non-EV users, by developing apps that work together

better. (0 votes)

• Reframe the “myths” about EVs by reframing the dialogue to a more positive message. (0 votes)

Britta Gross, Director of Advanced Vehicle Commercialization Policy for General Motors, and Lisa Teed, U.S. Marketing Strategy Manager for Ford Motor Company discuss public awareness with Liesl Clark, President of Michigan EIBC.


Convening 3: Long-dwell and DC Fast Charging

June 14, 2018

Topics Covered

The third EV convening focused on DC fast charging, long-dwell charging, and charging infrastructure deployment.

Summary

Michigan EIBC’s third EV convening was held at the Michigan Agency for Energy’s office in Lansing. Jeff Mason,

CEO of the Michigan Economic Development Coalition, kicked off the conversation with a discussion of how

EVs fit into Michigan’s economic development strategy. Mason described that the convergence of energy and

mobility is an important strategic point for Michigan. Mason explained that, while the state of Michigan is working

to create a climate where EVs and advanced mobility can flourish – including being home to the auto industry, a

large advanced battery industry, and research and development facilities – there is still work to be done.

Next, Shanna Draheim, Director of Policy Development for the Michigan Municipal League (MML), and Jukka

Kukkonen, founder of PlugInConnect, spoke on a panel about residential and workplace charging. Draheim

explained that investments in advanced mobility, vehicle electrification and EV charging can make a city or

community more attractive to potential residents and businesses. However, there are challenges for communities

include zoning, equity in access to investments in infrastructure and mobility, and funding.

Kukkonen began by describing PlugInConnect’s efforts to help apartment complexes and workplaces invest in

charging infrastructure. Kukkonen also explained how EV ownership and at-home charging can benefit utilities

with increased load at times when demand is lower. He described several common utility EV programs, including

time-of-use (TOU) rates and hourly pricing, charging infrastructure incentives, controlled charging programs, and

workplace, apartment, and condo charging programs.

Later in the meeting, Robert Jackson, Director of the Michigan Energy Office, outlined the agency’s efforts to

determine where DCFC infrastructure should be located. He emphasized the importance of a public charging

infrastructure including all parts of Michigan, rather than being limited to the larger cities.

Participants in EV convening Jukka Kukkonen, founder of PlugInConnect and Shanna Draheim, Director of Policy Development for the Michigan Municipal League discuss EV charging with Liesl Clark, President of Michigan EIBC.


Finally, MPSC Commissioner Norm Saari moderated a panel on accelerating DCFC deployment in Michigan

with Marcy Bauer, Director of Program Operations for EVGo, and Sophie Shulman, Business Development and

Partnerships Manager for Electrify America. Bauer touched on the importance of giving new EV drivers positive

first DCFC experiences to help break down barriers for the

next level of EV adoption. Shulman stated that the major

barriers to EV adoption are lack of infrastructure, speed of

charging, and customer awareness. She discussed how

Electrify America plans to build out the DCFC charging

network across the country to help address these issues.

Electrify America’s Cycle 1 investment will create a robust

DC charging network across 40 states and will consist of

484 DCFC stations with more than 2,000 DC fast chargers

and over 2,800 Level 2 chargers. Shulman emphasized

the importance of having accessible DCFC stations along

the highway, having multiple chargers at each station to account for maintenance issues and queuing, and

partnering with businesses to give customers something to do while their car is charging.

Key Takeaways

Matt Stanberry, Vice President of Market Development for Advanced Energy Economy closed the convening by

highlighting issues for stakeholders to continue to think about, including the following:

• Policies around multi-unit dwellings and the importance of utility engagement;

• Building additional public-private partnerships;

• Building flexible, adaptable technology (i.e., future-proofing);

• Prioritization of locations for DCFC deployment and partnerships to enable deployment;

• Rate design and policy incentives for DCFC infrastructure deployment; and

• Public outreach and education.

Convening 4: Fleet Electrification

July 18, 2018

Topics Covered

The fourth EV Convening focused on fleet electrification.

Summary

Michigan EIBC’s fourth EV convening was held at the Michigan Agency for Energy’s office in Lansing. Glenn

Stevens, the executive director of MICHauto, kicked off the meeting with an overview of the State of Michigan’s

approach to vehicle electrification. MICHauto’s goals are to maintain Michigan’s competitiveness in the advanced

mobility industry, position Michigan as the next-gen mobility center, and promote Michigan’s advanced mobility

industry as one that is high-tech, mobile, and growth-oriented. Stevens noted that mobility has been an inflection

point for Michigan and the world, and that the future of mobility is for vehicles to be automated, connected,

electrified, and shared. He noted that Michigan is making strides to regain market leadership in this mobility of

the future. The state leads in connected and automated vehicle research and is learning from other regions where

expertise is lacking. In closing, Stevens argued that adoption of these industries is “absolutely critical” to the

future of the auto industry in Michigan.

“ This has been a great experience. The networking that has come from these meetings has already helped push our EV initiatives in the City of Grand Rapids.” — EV convening participant


Next, Laura Sherman, Michigan EIBC’s Vice President of Policy Development, moderated a panel on trends in

fleet electrification with Sara Forni of Ceres and David Peterson of ChargePoint as panelists. Forni explained that

electrification can help companies meet their climate and emissions goals, help with workforce recruitment and

retention, provide companies with reputational benefits, improve workplace safety, give companies the benefit

of consistent fuel supply and price stability, and provide cost savings. According to Peterson, although most

current fleet electrification is light-duty vehicles, the next step will be heavy-duty transit buses, followed by mid-

duty trucks and vans, and finally heavy-duty truck fleets. He discussed the benefits of integrating fleet operators’

expertise – scheduling and logistics – with EV charging providers’ expertise to find the solutions companies need.

The next panel focused on medium and heavy-duty fleet electrification, with Stuart Irwin of EVolution EV Systems,

Rich Weiner of Schneider Electric, and David McEllis of the Environmental Law and Policy Center as panelists.

Irwin gave an overview of medium and light-duty applications, highlighting that the largest commercial truck

fleet deployments since 2010 were FedEx, DHL, PepsiCo/Frito-Lay, UPS, and utility companies like Consumers

Energy. Weiner discussed Schneider’s EMobility Fleets, noting that the total cost of ownership makes electric

fleets worthwhile. McEllis discussed efforts to electrify school buses, which reduces air pollution and saves

money on maintenance and fuel costs.

The final panel was moderated by Charles Griffith, Director of the Climate and Energy Program at the Ecology

Center. Matt Patton, Public Policy Manager at Lyft and Mike Alaimo, Executive Director of Clean Fuels Michigan,

discussed ride sharing. Patton explained that Lyft is focused on reducing congestion, even when that means

recommending fewer individual Lyft trips in favor of shared trips. Alaimo indicated that incentives are virtually

nonexistent in Michigan to electrify fleet vehicles. Clean Fuels Michigan is working on legislation to provide a

partial sales tax exemption and R&D incentive to reduce costs of buying and developing EVs.

Key Takeaways

• Electrification of public transit fleets, municipal fleets, and commercial fleets can be cost-effective and beneficial

to the community. However, given the up-front costs, more needs to be done to provide fleet managers with

the information, data, and incentives needed to make large-scale electrification a reality.

Britta Gross, Director of Advanced Vehicle Commercialization Policy for General Motors, and Lisa Teed, U.S. Marketing Strategy Manager for Ford Motor Company discuss public awareness with Liesl Clark, President of Michigan EIBC.


Convening 5: Rate Design

August 15, 2018

Topics Covered

The fifth EV convening focused on rate design and a review of the proposed utility EV programs.

Summary

Michigan EIBC’s fifth EV convening was held at the Michigan Agency for Energy’s office in Lansing. Michigan

EIBC President Liesl Clark opened the convening by describing the preceding meetings, which, in addition to

covering specific topics, served to emphasize that EVs are crucial to the deployment of automated, connected,

and shared vehicles. To start the programming, Chris Nelder, Manager of Vehicle-Grid Integration at the Rocky

Mountain Institute described key considerations when designing rates for EV charging. Nelder outlined important

goals for EV rate design, including that charging should be profitable, it should be cheaper than gasoline, Level 2

charging should be considerably cheaper than fast charging, and grid services provided by EV charging should

be incentivized. EV charging stations should also have dedicated tariffs and meters (preferably within the charging

station or vehicle). Nelder went on to identify the key challenges and issues facing EV rate design. According to

Nelder, DCFC is currently a market failure due to 1) high capital costs, 2) low utilization rates, and 3) significant

demand charges for the infrequent large loads. Nelder made it clear that while public DCFC infrastructure will

play a critical role in a network of vehicle charging, most utility tariffs are not designed for DCFC operators,

particularly when it comes to demand charges. Demand charges are especially problematic at low utilization

rates, which could account for 90% of the bill. Nelder emphasized that Michigan needs to implement time-of-use

rates without demand charges when adoption is low, deploy a network of DCFC charging, and drive investment

from the private sector using the VW settlement funds.

Robert Jackson next provided an update on MEO’s study of EV infrastructure needs. This effort has focused

specifically on engineering design considerations but has not included a policy analysis yet. Some of the key

take-aways include that DCFC is critical to building the necessary infrastructure to meet the needs of Michigan’s

drivers and economy. The next steps include the drafting and circulation of an EV charging infrastructure roadmap

based on the work MEO has invested to this point. The report will be ready later this year and will inform the

spending of the VW settlement funding. Jackson shared that the strategy for the deployment of the VW settlement

funds is to allocate the money over the course of three years in equal amounts.

Liesl Clark, President of Michigan EIBC Chris Nelder, Manager of Vehicle-Grid Integration at the Rocky Mountain Institute


Finally, a panel discussion provided an update on utility initiatives and pilot programs on EVs. The panel featured

Camilo Serna, Vice President of Corporate Strategy of DTE Energy, Scott Weber, Director of Alternative Energy

Solutions of Consumers Energy, and Sam Hogg, Director, Business Origination at Wolverine Power Supply

Cooperative. Serna began with an overview of DTE Energy’s proposed EV program, which includes $1.6

million for customer education, $1.5 million in residential rebates for charging infrastructure, and $10 million for

rebates for public charging infrastructure including DCFC and Level 2 using a make-ready model. Scott Weber

of Consumers Energy then outlined Consumers’ proposed program and approach to EV deployment. Weber

explained that Consumers program includes rebates for residential charging infrastructure, rebates for public

Level 2 and DCFC charging infrastructure using a make-ready model, as well as public education. Sam Hogg

of Wolverine Power then shared the status of EV infrastructure deployment for Wolverine Power. He highlighted

some of the benefits and synergies for EV infrastructure

and utility cooperatives. At Wolverine Power, the move

toward EVs needs to be something that members of

the cooperative want. Hogg emphasized the need for

rebates for customers, demonstration projects, and the

implementation of time-of-use rates. Hogg also sited

DCFC as a challenge that Wolverine Power is moving

forward to address cautiously.

Key Takeaways

To close the convening, Liesl Eichler Clark led a

discussion of important next steps coming out of the five

EV convenings held by Michigan EIBC. Clark highlighted

that EVs are clearly an industry that is growing and will

serve as the underpinning for advanced mobility solutions, of which Michigan is positioned to be a leader. EVs

can be a grid tool that provides smart, dynamic load, but they must be properly integrated. As the transition to

EVs occurs and has implications for transportation and electricity markets, stakeholder conversations and buy-in

are needed for success. Reflecting back information from the various conveners, Clark identified key next steps,

including the development of more stakeholder convenings that focus on particular policy outcomes, a roadmap

for the next administration driven by a gaps assessment, and the need to take real action around customer

awareness.

The audience also identified the following topics for further engagement:

• The need to educate and engage with auto dealerships

• Support for cities and communities in promoting EVs

• Possible business models for DCFC charging and the need to engage site hosts

“ MI EIBC EV Convenings have brought together an important group of industry leaders that can help determine a vision of the EV industry to help inform and deliver the message to Lansing of what is needed to make MI successful in this rapidly changing industry!” — EV convening participant


Recommendations for Future Actions

The five Michigan EIBC EV convenings – in addition to other efforts including PlanetM, the American Center for

Mobility, and the Governor’s Council on Future Mobility – have underscored the progress and development of

the mobility industry, and the increasingly important nexus between EVs and automated, connected, and shared

vehicles. The convenings also facilitated productive dialogue and networking among stakeholders. Finally, they

served to fill a gap in understanding and coordination, demonstrating the need for a continuing venue to enable

the sharing of ideas and collaboration moving forward.

The impacts of the Michigan EIBC EV convenings have been tangible. The convenings, which took place

throughout 2018, were designed to facilitate stakeholder collaboration and education, support and inform

utility pilot programs and strategies for Volkswagen settlement spending and determine future steps to foster

supportive policy outcomes and improve EV deployment in Michigan. Progress has been made toward each of

these objectives. First, the convenings were met with strong interest and filled a gap by connecting topics and

stakeholders from across the advanced mobility space.

More than 140 stakeholders attended, representing 74

organizations from across the advanced mobility spectrum.

Responses to a survey conducted after the fourth

convening were overwhelmingly positive, with several

respondents citing the need for continued multi-party

efforts to organize and coordinate the industry. Second,

the convenings have advanced the dialogue around timely

actions by DTE Energy and Consumers Energy. Both utilities have proposed EV pilot programs, citing information

and discussion at the Michigan EIBC EV convenings as informing the companies’ plans.3 Finally, the convenings

identified both a need for a more focused effort to achieve legislative and regulatory outcomes and a need to

improve customer awareness and education about EVs. As the advanced mobility state, the answer to “what’s

going on in Michigan?” needs to be that “we’re creating the premiere EV program in the nation.”

Building on these convenings and the input from attending stakeholders, Michigan EIBC recommends the

following next steps:

1. Gaps Assessment The convenings provided a survey and discussion of the most pressing considerations around vehicle

electrification, but they also pointed to gaps that exist around current efforts and initiatives toward EV deployment.

The Volkswagen Settlement efforts, Electrify America dollars, and the DTE Energy and Consumers Energy EV

pilot programs are the most tangible drivers for action on EVs currently in Michigan. These initiatives and how

they are deployed are crucial to deployment of EV infrastructure in the near term and are equally important

in setting the stage for future, more widespread efforts. As such, a detailed assessment of remaining gaps in

ongoing initiatives needs to be undertaken with participation from stakeholders. A gaps assessment can

also support communication needs such as ensuring continuity of programs for EV customers.

2. Topical Future Discussions The first five EV convenings prioritized education and discussion across a wide-range of subjects. These

3 See, for example, testimony of Witness Camilo Serna in U-20162 (e.g., p. CS-9). https://mi-psc.force.com/sfc/servlet.shepherd/version/download/068t00000023OLKAA2.

Automated, connected, and shared vehicles will not hit Michigan roads without wide-scale vehicle electrification.


presentations and the resulting discussions – formal and informal – yielded the beginnings of important policy

and regulatory conversations amongst stakeholders.

Michigan EIBC recommends a new series of discussions focused on specific topics identified by stakeholders

as critical:

1) gaps assessment (as described above) to further develop stakeholder conversations;

2) policy and regulatory priorities;

3) discussion with dealers and dealer organizations;

4) discussion with potential site hosts for DCFC infrastructure.

There are many players who will contribute to the building of this future for Michigan and two important pieces

to the puzzle seem to need immediate attention. The first is growing the stakeholder team to include auto

dealers to provide insight into the economic drivers for that industry and what role the dealers see themselves

playing in the future of mobility. The second is exploring potential business models for DCFC site hosts.

Given the challenging economics for DCFC site hosts, there is not yet a clear path forward on this topic. It is

important to explore options for DCFC site hosts by engaging with stakeholders including possible providers,

real estate firms, and commercial facilities managers.

Each of these discussions would not only be informative for stakeholders, but also, the conversations would

lead to specific objectives and needs that can be addressed.

3. Roadmap for Next Administration The gaps assessment and stakeholder convenings will help inform a roadmap developed for the next state

administration focused on key policy and regulatory priorities, best next steps, and opportunities to ensure

that Michigan is a leader in the automated, shared, connected, and electrified mobility future.

Documents

Electric V ehicle Convenings - MIEIBC · Electric Vehicle Convenings: Report and Next Steps 4 In October 2017, the MPSC opened a docket to seek comments on whether Michigan’s utilities